Who Told Fed Electronics Sales Were Strong? Couldn’t Have Been Best Buy

Here’s a riddle from the Federal Reserve: How many electronics retailers are based in Minnesota?

Associated Press

An anecdote in the Fed’s beige book on Wednesday offered this nugget courtesy of the Minneapolis Fed: “A Minnesota-based retailer noted that electronics and gaming product sales were particularly strong during the holiday season.”

On Thursday, Best Buy Co. reported sales well below expectations, sending its stock price plummeting. The retailer, which is based just outside Minneapolis, said holiday sales in the U.S. were weaker this year than those a year ago. “The highly promotional environment has not led to higher industry demand,” Chief Executive Hubert Joly said.

It’s certainly possible there are other electronics stores in the Land of 10,000 Lakes. Target Corp., which sells a lot more than electronics, is based in Minneapolis.

The 12 Fed districts do not disclose the specific companies they poll in compiling the summary of regional economic conditions. But Fed staffers are known to talk with major corporations in their regions to provide a window into the state of the economy ahead of policy meetings.

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